Every year, the growing influx of foreign buyers and investors makes Madrid a real estate investment reference point. Given this scenario, it is crucial to have accurate information to make informed decisions. Here we share key information for the success of your real estate investment in Madrid.
What to consider when investing in real estate in Madrid?
The main objective is to provide you with a clear overview of the options available to you as an investor in Madrid. Housing demand in the city, whether for purchase or temporary rental, far outstrips the supply. In light of this, two strategic options present themselves:
- To refurbish and sell: Opt to refurbish the property for sale, taking advantage of the high demand in Madrid’s property market.
- Rent for long-term profitability: Keep the property and generate income through renting. This approach is particularly effective in the different markets and rental types that Madrid offers.
The three rental markets
Madrid is not only an important business center but also an educational and tourist hub, thus creating three distinct rental markets:
1. Corporate Housing
Madrid is an important business center. The presence of numerous national and international businesses generates a constant demand for temporary corporate housing or accommodation for executives.
2. International Students
The leading European educational institutions and business schools located in Madrid attract thousands of foreign students each year, generating a significant demand for temporary housing during the time set aside for their academic training.
3. Tourism
Madrid, as a leading tourist destination, is experiencing a growing preference for private accommodation, which contributes to the profitability of properties destined for tourist rental.
Additional return benefits
Well-structured real estate investments can provide benefits beyond financial returns, such as: obtaining special visas, residence permits and tax benefits.
In terms of the legal requirements to be met by the investor, there are no extraordinary demands, but taking advice from local professionals, such as Marcos from ECIJA, can be crucial in understanding the legislation, avoiding inconveniences and maximizing these benefits.
Further information about investing in real estate in Madrid
Explore real estate investment trends and opportunities in Madrid, learn more about how to obtain a Golden Visa and discover how housing reform to improve the property value. Plus, learn about the key qualities of an efficient Property Manager.
Do you need a rental expert?
If you are an investor or landlord, please visit our DFLAT page for information on property owners management services. DFLAT hosts corporate, executive, expatriate and high-end Master students, we list corporate apartments, student apartments or short term apartments and we market through B2C, B2B and proprietary channels.
